ProActive Solutions is seeing significant supply chain constraints and repeated price increases, which are expected to extend into 2027. The main source of these issues is the rapid growth and demand for artificial intelligence (AI) infrastructure.
The top four "hyperscalers": Amazon, Alphabet (Google), Microsoft, and Meta are projected to spend over $600 billion to $700 billion, primarily for AI infrastructure, chips, and data centers. This investment in AI represents a nearly 60% to 70% increase in spending compared to 2025.
Component shortages include AI GPUs, memory, and storage, along with general server CPUs. ProActive Solutions can help you identify and navigate this fluid situation to find the best path forward.
Memory and Storage Shortages: RAM (DRAM) and NAND flash memory are the most critically impacted, with prices for 64 GB DDR5 rising drastically. Certain high-end memory components are being listed as sold out for 2026. SSD prices are also seeing steep increases with this new demand.
CPU and Component Shortages: Intel and AMD have reported that their server CPU capacity is largely sold out for 2026.
AI-Driven Hardware Shortages: The rapid expansion of AI data centers has created a severe shortage of advanced GPUs (e.g., Nvidia H100/A100) and HBM, with lead times extending up to six months and some manufacturers fully booked for 2026.
Data Center Capacity Shortages: A projected 11-gigawatt (GW) shortfall in data center capacity is expected well into 2028.
Networking Gear: Switches and Access Point (AP) licenses are seeing significant price increases, with some doubling from 2025 levels.
Laptops and Desktops: Price increases continue into 2026.
Price Increases: IT announcements continue to be averaging increases of 10% to 50%.
New urgency to place orders immediately: Many manufacturers are adjusting all quotes to expire after 14 days, and availability can disappear within hours.
Plan ahead: Communicating project timelines and working to confirm supply and costs early will help eliminate cycles and budget limitations.
Consider Alternatives: Where available, we can look at alternative inventory.
Portfolio Diversification: We continue to broaden our line card to include brands to offer alternatives and support our clients’ needs.
Equipment you have on hand has value: We can help get you the best price on the products you no longer need to offset these costs. There are a lot of options, and we will work to find you the best price.
Our team is working through scenarios every day and can help you navigate the current landscape. Reach out to your sales rep or, if unsure who to contact, use the link below to connect with our sales team.
Find out how we can help you navigate supply constraints and price increases. Reach out to ProActive Solutions today.